It is very important as a manager to accurately gauge one’s competence; overconfidence can lead to significant business failures. Self-perceived expertise can cause individuals to overclaim knowledge, often mistaking confidence for actual competence. Genuine expertise, however, is marked by an accurate understanding of one’s limitations. The article advises leaders to rely on proven track records and data when evaluating their own abilities and those of others, underscoring Warren Buffet’s philosophy: success hinges on knowing the boundaries of your circle of competence.
